Don’t Fight Complexity with Complexity

Price inflation hasn’t been much of a worry so far, despite aggressive actions to spur economic growth. Page inflation is another matter.

In response to the financial crisis, governments and central banks have devised a host of new banking rules. But these have added layers of complexity to already complex banks and financial systems, argued Andrew Haldane, executive director for financial stability at the Bank of England.

Speaking at the recent Jackson Hole economic conference, Mr. Haldane noted the Glass-Steagall Act, the Depression-era legislation that split commercial and investment banking, was 37 pages. By comparison, the more recent Dodd-Frank Act runs to 848 pages. And, so far, Dodd-Frank has resulted in 8,843 pages of additional rules.

A similar pattern emerges with the international Basel Accords, governing things like bank capital. The first round, in the 1980s, was 30 pages. Basel II, agreed in 2004, was 347 pages. Basel III, from 2010, is 616 pages.

Better, Mr. Haldane said, to come up with simpler principles to rein in banks. Even so, he needed a 24-page speech to argue this less-is-more approach.

Comments (1 of 1)

It is well known that JPMorgan short sells gold and silver in one day equal to the entire mining production of a full year. It is all a paper scam and will soon fall with those investing in paper gold and silver as the big losers.

Crash JPMorgan criminal syndicate, Buy 1 ounce Silver.

Silver Price is Heavily Manipulated. Silver should be $100 to $150 an ounce today.

“Occupy Silver” Movement. Buy 1 ounce Silver — Help End Corruption of Fiat Currency?
Atleast reduce the dependence of world economy on fiat currency by buying 1 ounce Silver or Gold so that money-printing can be controlled by the citizens and worldwide people.

Cruise missile has 16 kg Silver. In year 1980, Silver had many industrial use but Silver reached $50 an ounce in 1980.

The historic ratio, through hundreds if not thousands of years of Gold:Silver was 1:16. If that was true today, with gold at $1700, silver would be upwards of $100. Plus, gold tends to be mined and hoarded. Silver is mined and then used. Silver should be worth much much more than it is worth today.

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